Balcor Realty Venture Aims At Japanese

Balcor Co. on Wednesday unveiled a joint venture, possibly the first of its kind, that will enable the real estate investment firm to market U.S. properties to the Japanese.

Skokie-based Balcor said it will be a partner with three of Japan`s largest corporations and the Amex Finance Japan Ltd. affiliate of American Express Bank in the newly formed American Investment Management Co., Tokyo.

The Japanese partners will own 75 percent of American Investment. They are Misawa Homes Co. Ltd., Japan`s largest manufacturer of single-family homes; Orient Finance Co. Ltd., that nation`s largest consumer credit provider; and international trading giant C. Itoh Co. Ltd.

Balcor will own 20 percent, and Amex Finance, 5 percent, according to Balcor President Stephen H. Silverstein.

The partnership ``is very important for Balcor . . . because this provides an entre into a major marketplace with prestigious and successful companies as our partners,`` Silverstein said in a telephone interview.

Chiyoji Misawa, chairman of Misawa Homes and of the new joint venture, said American Investment ``will be able to direct (Japanese) investors to Balcor and act as an intermediary to ensure their investment objectives are clearly defined.``

``Many Japanese investors desire to invest in quality U.S. real estate,`` Misawa said in a prepared statement, ``but lack the experience and expertise needed to select good investments; nor do they have the personnel in the U.S. to manage such properties.``

Silverstein said the Japanese investors are expected to be institutional entities, such as life insurance companies and pension funds, and privately and publicly held companies. The joint venture, he explained, would operate like a commingled trust, pooling investor funds to acquire properties.

The Balcor executive declined to predict how much Japanese money may be raised except to say the amount could be ``well in excess of several hundred million dollars over the next several years.``

The joint venture initially will seek office buildings, Silverstein said, and ultimately may acquire shopping centers and apartment complexes. Announcement of its first acquisitions, possibly of office properties in the Chicago area, is expected within 30 days, he said.

A wholly owned subsidiary of Shearson Lehman Brothers Inc., which in turn is a unit of American Express Co., Balcor is one of the nation`s largest real estate syndication and investment firms. It has more than $6 billion in income-producing properties under its management, up from $5.5 billion at the beginning of the year and $200 million in 1978.

Formation of American Investment represents the second major real estate deal this month involving a Chicago area company and the Japanese.